Standard Life Aberdeen profit hit by pandemic, Lloyds withdrawal

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August 7, 2020

LONDON British asset manager Standard Life Aberdeen’s pre-tax profit fell 30% to 195 million pounds ($256.02 million) in the first half due to the impact of the coronavirus pandemic and the withdrawal of assets by a large client, it said on Friday.

Fee-based revenue dropped 13% to 706 million pounds due to 2019 outflows, clients switching to lower-fee assets in the tough environment, and a scheduled withdrawal of assets by Lloyds Banking Group. The numbers came in below analysts’ expectations of 717 million pounds.

“There is no question that the impact of COVID-19 has played a role on our results,” outgoing chief executive Keith Skeoch said in a statement, with the outlook for revenue seen as “challenging” for the asset management industry.

Shares in the firm were flat at the open, in line with the broader market.

The withdrawal of a 25 billion pound tranche by Lloyds is part of a larger exit taking place following the merger between Scottish insurer Standard Life and asset manager Aberdeen in 2017.

Lloyds said the merged group was a material competitor to its Scottish Widows pensions unit, whose assets were managed by Aberdeen, and is pulling out the bulk of the 100 billion pounds previously run by the fund manager. It withdrew 41 billion pounds in the second half of 2019.

Standard Life Aberdeen sold its insurance business to Phoenix in 2018.

SLA’s assets under management and administration fell 6% to 512 billion pounds, above a forecast 506 billion.

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SLA said it would pay an interim dividend of 7.3 pence per share, unchanged from a year ago but above a forecast 6.8 pence.

Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor

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Standard Life Aberdeen profit hit by pandemic, Lloyds withdrawal

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